Liabilities at the date of the distribution


Brian is a 25% partner in the BC Partnership. On January 1, BC distributes $20,000 cash and land with a $16,000 fair value (inside basis $8,000) to Brian. BC has no liabilities at the date of the distribution. Brian's basis in BC is $16,000. What is the amount and character of Brian's gain or loss on the distribution?

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Accounting Basics: Liabilities at the date of the distribution
Reference No:- TGS0677330

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